A Settlement Agreement (formally known as a Compromise Agreement) is a legally binding agreement between an employer and an employee. Usually, an employee accepts a sum of money in return for agreeing not to bring certain legal claims against their employer. Settlement agreements are most frequently used by employers when a relationship with an employee breaks down, when employees are redundant and when the employer wishes to agree specific exit terms. The terms of the settlement agreement should be tailored to your business needs and usually cover matters such as:
We can draft bespoke agreements to ensure that your business is protected from future claims by the exiting employee.